Employment lawyer tells HRD how to avoid legal pitfalls
The hybrid work model, while still a point of contention for some employers wanting staff to return to the office, is now embedded in many workplaces.
While employees like the flexibility of WFH, it comes with a range of legal complexities that HR leaders find themselves at the centre of resolving.
“Ten years ago, employees had to fight for flexible work. Now the challenge for employers is bringing people back into the office,” Mandi Xu, Principal at Melbourne-based law firm, Russell Kennedy, told HRD.
“The hybrid model is here to stay, but it comes with risks that employers need to manage carefully.”
Ahead of her session at the Employment Law Masterclass Australia later this month, Xu emphasised there are a number of ways employer can navigate the legal ‘grey areas’ around hybrid work.
Issues surrounding compliance, Xu said, include:
- Productivity and performance management
- Work health and safety risks
- Side hustles and potential conflicts of interest
- Data security and confidentiality breaches
- Loss of workplace culture and conflict
Tackling legal issues in hybrid work agreements
Xu outlined several key issues that workplaces could face when it comes to upholding workplace agreements, whilst also allowing flexibility to staff – a key priority for many, especially Gen Z.
“It’s never one-size-fits-all - some employees thrive in hybrid arrangements, others need more structure, and a small percentage will test the boundaries. HR needs the frameworks and the tools to deal with all three,” she said.
To ensure sufficient guardrails are in place, it’s recommended HR leaders have sustained ‘touch points’ with employees to ensure compliance and reduce issues that could “snowball” to legal complaints.
“You should set clear KPIs, check progress regularly, and equip managers to intervene early.”
““Often, claims start with a misunderstanding that could have been resolved over coffee. In a hybrid model, those informal conversations happen less often—and that can cause tension,” she added.
Focus on psychological safety and collaboration in a hybrid work environment
In addition, psychological safety concerns were highlighted as a key legal issue employers could face with a large remote workforce.
“Post-COVID, we’re seeing a delayed wave of mental health challenges. The blurred boundaries between work and home life mean personal issues—like isolation, family stress, or even domestic violence—are filtering into the workplace,” she explained.
“People are complex, managers aren’t always equipped for people management, and economic pressures create more change and uncertainty.”
Without regular check-ins with team members, managers risk a loss of control that can result in missing signs of underperformance or unhappiness, such as isolation.
This, Xu outlined, can be targeted with clear communication and strategies to ensure performance metrics are being met.
“Don’t wait for performance problems to snowball—set clear KPIs, check progress regularly, and equip managers to intervene early,” she emphasised.
Historic struggles with flexible work compliance
This isn’t a new problem, Xu concluded, but one that many employers are still getting wrong.
“Connection days and having regular check-ins aren’t just nice-to-have—they’re a preventative measure against bigger legal and cultural problems,” Xu noted.
One of the other key ways to tackle this issue is through strengthening policies and asking for legal advice before issues arise.
“Policies should be living documents, not a tick-the-box exercise,” Xu said.
“The biggest mistake I see, is businesses only calling legal when something’s gone wrong. We can add a lot more value if we’re involved early by helping HR set up frameworks and troubleshoot risks before they turn into claims.”
The Employment Law Masterclass Australia is a must-attend event for HR leaders and employers navigating significant changes to workplace law in 2025. With post-election industrial relations reforms, evolving Fair Work priorities, and growing pressure on compliance, this online event delivers timely insights to help organisations manage legal risk with confidence.
Join us online on 27 August 2025 and explore key developments in restructuring, psychosocial hazards, enterprise bargaining, flexible work, and employee litigation.
Gain practical strategies for conducting defensible investigations, supporting employee wellbeing, and adapting workplace policies to meet today’s legal and operational demands.
